reconvene regular meeting: 7:00 pm - Irvine Unified School District

Participants are entitled to temporarily borrow up to 75% of funds held in non-general fund accounts but
cannot borrow any funds held in general obligation bond funded accounts.
Covenants of the Participants
SUMMARY OF THE NOTE RESOLUTIONS
In its respective Note Resolution, each Participant has approved and authorized the set-aside of the
Pledged Revenues in the respective Repayment Months and has represented or covenanted, among other
things, the following:
(A) That the Participant has (or will have prior to the issuance of its Note and
Additional Parity Note, if issued) duly, regularly and properly adopted a preliminary budget for
Fiscal Year 2010-11 setting forth expected revenues and expenditures and has complied with all
statutory and regulatory requirements with respect to the adoption of such budget, and the
Participant will duly, regularly, and properly prepare and adopt its final budget for Fiscal Year
2010-11 and comply with all applicable law pertaining to its budget;
(B) That the sum of the principal amount of the Participant’s Note plus the interest
payable thereon, on the date of its issuance, will not exceed 50 percent of the estimated amounts of
such Participant’s then uncollected taxes, income, revenue (including, but not limited to, revenue
from the State and federal governments), cash receipts and other moneys to be received by such
Participant for the general fund of such Participant provided for and attributable to Fiscal Year
2010-11, all of which will be legally available to pay principal of and interest on the Note;
(C) That the Participant, as of the date of adoption of its Note Resolution and on the
date of issuance of its Note and Additional Parity Note, reasonably expects the County to collect at
least 85 percent of the amount described under (B) above for Fiscal Year 2009-10;
(D) That the Participant (i) has not defaulted within the past 20 years, and is not
currently in default, on any debt obligation and (ii) to the best knowledge of such Participant, has
never defaulted on any debt obligation;
(E) That the Participant will not directly or indirectly amend, supplement, repeal or
waive any portion of its Note Resolution in any way that would materially adversely affect the
interests of the Noteholders or Note Participation Owners;
(F) That the Participant and its appropriate officials have duly taken, or will take, all
proceedings necessary to be taken by them, if any, for the levy, receipt, collection and enforcement
of the Pledged Revenues in accordance with law for carrying out the provisions of its Note
Resolution, the Trust Agreement, if any, and its Note;
(G) That except for an Additional Parity Note, if any, pursuant to the Note Resolution,
the Participant will not incur any indebtedness secured by a pledge of its Unrestricted Revenues
unless such pledge is subordinate in all respects to the pledge of Pledged Revenues under its Note
Resolution;
(H) That, as of the date of adoption of its Note Resolution, the Participant does not
have a negative or qualified certification applicable to Fiscal Year 2009-10 within the meaning of
Section 42133 of the Education Code of the State of California;
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